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Bitcoin Options Point To Recover Signs After Meltdown, Positive Signals From Bitcoin Options -Newshubweek

Bitcoin Options Point To Recover Signs After Meltdown, Positive Signals From Bitcoin Options
-Newshubweek
Written by Arindam

The crypto market has been down for the past few months but options traders are seeing some positive signs in the market. The price of bitcoin, the largest cryptocurrency by market capitalization, fell below $20,000 earlier this month. However, there has been some recovery since then.

Chris Bae, co-founder of EDG, tracks global exchanges that offer open interest as well as options trading. “There is no sign of a significant reduction in liquidity. Business in the options market seems to be moving towards normalcy,” he said. However, the market has taken a beating due to increased attacks by hackers, the deterioration of some stablecoin projects and the collapse of some large crypto hedge funds. The financial position of crypto lending firms has been revealed to be weak in recent weeks. Crypto lending firm Celsius Network has banned the transactions of customers.

According to the report of the news agency Bloomberg, the crypto market has had a major impact on the increase of interest from the Federal Reserve of America and central banks of some other countries. The market situation has changed a lot in the last year. The total number of open interest or outstanding contracts has dropped significantly from the high. Open interest stood at around $15 billion in October last year, which has now come down to a little over $7 billion. Volumes are also a little less than $600 million, from an all-time high of over $8 billion in October last year. Patrick, Head of Institutional Coverage (APAC) at Paradigm, said a fall in open interest is indicative of market sentiment. It goes down when the market goes down.

The decision of banning the transactions of Celsius Network is being investigated by the regulators. Celsius had said that due to the poor condition of the crypto market, it is prohibiting withdrawal and transfer between accounts. The US-headquartered firm’s decision to freeze transactions is being probed by some regulators, including the Texas State Security Board. The US Securities and Exchange Commission (SEC) has also sought information from the firm in this regard.

Cryptocurrency prices in Indian exchanges

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Arindam

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